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AGANA, Guam (August 27, 1997 - Radio Australia)---There is growing concern in Guam that the crash of a Korean passenger plane two weeks ago is having a negative effect on tourism.

Radio Australia Pacific correspondent Richard Dinnen reports that two airlines have canceled flights into Guam since the crash.

He says, "Korean Air flight 801 crashed on approach to Guam Airport, and more than 220 people were killed. Korean Air has since canceled all night flights into Guam, and Asiana Airlines has temporarily suspended all its flights.

"Both airlines say they are concerned that a navigational aid called a glide slope has been out of action at Guam for a long time. It's a device particularly useful for pilots flying in bad weather or at night," reports Dinnen.

"With the flights canceled, at least for now, Guam's tourism industry is feeling the pinch.

"Meanwhile, search officials at the crash site have begun using specially trained dogs brought in from...

PORT VILA, Vanuatu (August 28, 1997 - PACNEWS)---Vanuatu's Finance Minister, Willie Jimmy, has told Parliament that the vigorous collection of revenue by his department in recent weeks has enabled the government to stay afloat.

He said when he returned to the Ministry of Finance two months ago, the government's financial future was so bleak that he even considered withholding monthly salary payments for public servants, MPs and government ministers.

Jimmy says until the Value Added Tax (VAT) is introduced in July 1998, as recommended under the Comprehensive Reform Program, full payment of business license fees is essential to ensure government collection of sufficient revenue to fund ongoing government services.

Nevertheless, the Vanuatu government's weak financial base has forced Jimmy to delay payments of millions of dollars in severance pay to Vanua'aku Pati MPs and political secretaries.

PALIKIR, Federated States of Micronesia (August 28 - PIDP/CPIS)---A delegation from the FSM national government in Palikir, headed by Vice President Leo Falcam, will travel to Yap next month to present Governor Vincent Figir with a check for $2,000,000.

The funds, part of a loan approved by the Asian Development Bank, are being awarded to Yap State for its early completion of a plan to implement cost-saving government structural reforms. It is the first of the four FSM states to do so.

AUCKLAND, New Zealand (August 28, 1997 - Agence France Pressse)---The Papua New Guinea (PNG) government will be represented at a new round of talks aimed at bringing peace to the civil war torn island of Bougainville, Foreign Minister Don McKinnon said Thursday.

He is currently on Bougainville following a meeting in Port Moresby with new PNG Prime Minister Bill Skate.

McKinnon said the next round of talks would likely be held "before the end of September" at the New Zealand Army base at Burnham Camp, south of Christchurch.

Last month talks at Burnham bought together the pro-PNG Bougainville Transitional Government (BTG) and the rebel Bougainville Interim Government (BIG) and the Bougainville Revolutionary Army (BRA). They produced the "Burnham Declaration" which in part called for a withdrawal of the PNG Defense Force from Bougainville and the installation of a United Nations peace keeping force.

HONIARA, Solomon Islands (August 28, 1997 - PACNEWS)---The newly-elected Prime Minister of the Solomon Islands, Bartholomew Ulufa'alu, says he is confident his grand coalition Alliance for Change government will last the four year term of Parliament.

Ulufa'alu made the statement in reaction to skepticism that his government might collapse like the short-lived multi-partied National Coalition Partnership government, which came to power following the 1993 general elections.

Ulufa'alu told a news conference following his swearing-in Wednesday that his alliance government of six political parties and independents is firm and committed to change in leadership and economic reforms.

He said with good leadership, contented and committed backbenchers, and strong support from the public, he is confident his government will last the full four years.

Ulufa'alu said although his government is a grand coalition of political parties with different...

The extra flight, which went into service July 2 for two months, was added to the Hawaii- American Samoa schedule to accommodate heavy summer traffic between the two U.S. Pacific Islands areas.

A Hawaiian Airlines spokesperson said extra flights will be added again during the usually busy Christmas season. Specific flight dates will be announced later. Meantime, Hawaiian Airlines is continuing its regularly-scheduled twice-weekly DC-10 service between Honolulu and Pago Pago.

The Honolulu-based airline also flies weekly to Papeete, Tahiti, its only other Pacific Islands region destination.

MAJURO, Marshall Islands (August 28, 1997)---Letters and packages mailed in Majuro during the month of August have gone out just once, on Saturday August 23, according to Majuro Post Office officials.

Jam-packed Continental Micronesia flights during the summer have disrupted the normal flow of mail delivery to and from Majuro.

Both east- and west-bound flights were solidly booked since the first of August, making it impossible to get mail onto the planes, the Post Office said.

Last Saturday, all outbound mail was shipped to Guam, for re-mailing back to Hawaii, the United States and other destinations, according to the P.O.

Local postal officials have been in contact with the Guam postmaster to insure proper handling of the mail sent there last weekend, the P.O. said. Marshall Islands Postmaster Sailass Andrike left for Honolulu this week to meet with the Honolulu postmaster about ways to improve the severe mail delivery problems...

APIA, Samoa (August 28, 1997 - PACNEWS)---Samoa's second major airport, at Fagalii outside the capital of Apia, will be closed temporarily to permit work on a new airport terminal.

The $115,000 project includes doubling the present terminal's size and adding new passenger processing facilities

The airport at Fagalii is the main entry and exit point for passengers traveling between Apia and Pago Pago in American Samoa. It also serves domestic travelers flying between Samoa's main islands of Upolu and Savaii.

Upolu's Faleolo International Airport will handle all canceled Fagalii services until November, when the Fagalii airport terminal project is expected to be completed.

RAROTONGA, Cook Islands (August 27, 1997 - Radio Australia)---The Cook Islands government says it has persuaded the Nauru government to release a mortgage it holds on the Rarotongan Hotel.

Selling off the government-owned hotel is a major component of the Cook Islands government's economic reform package. Although a local buyer was found for the Rarotongan, closing the deal already has been delayed more than nine months because of the Nauru government's unwillingness to release its mortgage rights.

According to Cook Islands government reports, however, it now is understood that Nauru will be paid approximately $NZ3,000,000 for the release.

Meantime, the Cooks government has been attempting to refurbish the Rarotongan Hotel in time for it to serve as a primary venue for next month's South Pacific Forum meeting of Presidents and Prime Ministers, but the project is running significantly behind schedule.

PAGO PAGO, American Samoa (August 28, 1997 PACNEWS)---A member of the American Samoa House of Representatives is drafting legislation that may result in the U.S. South Pacific territory not recognizing its neighbor's name change.

On July 2, Western Samoa officially dropped the Western from its name and became the Independent State of Samoa.

Representative Seti Lopa says he does not want American Samoa to honor the new name, and has proposed legislation that will stop American Samoa from recognizing it. If his bill is passed, he said, passports bearing the "Independent State of Samoa" seal will not be accepted in the territory.

"Neither will citizens of Western Samoa be referred to as Samoans," he said.

Lopa said the recent South Pacific Mini Games in Pago Pago brought home the adverse effects of Western Samoa's name change. He said describing Western Samoans as Samoans and local residents as American Samoans, made it seem that locals were...

Pacific Islands Report is a nonprofit news publication of the Pacific Islands Development Program at the East-West Center in Honolulu, Hawai‘i. Offered as a free service to readers, PIR provides an edited digest of news, commentary and analysis from across the Pacific Islands region, Monday - Friday.